Crypto investment products hemorrhaged $1 billion last week as escalating Iran tensions and stubborn inflation sent institutional investors scrambling for the exits. The outflows, concentrated in Bitcoin and Ether funds, mark the largest weekly withdrawal in months. But the selloff wasn’t universal — XRP and Solana funds continued to attract fresh inflows, a signal that some allocators are still rotating into altcoin exposure despite the broader risk-off mood.
The $1 billion exodus
The pullback hit Bitcoin products hardest. Institutional investors yanked money from both spot and futures-based Bitcoin funds, according to the latest flow data. Ether products also saw net redemptions, though the sums were smaller. The trigger? A double dose of macro jitters: rising inflation prints in the U.S. and Europe, plus renewed military posturing between Iran and Israel early this month. The combination spooked the same cohort that had been piling into crypto just weeks earlier.
Where money went instead
While most of the crypto fund universe bled capital, XRP and Solana funds posted net inflows. The divergence is notable. XRP has drawn continued interest following recent legal clarity in the U.S., and Solana’s developer ecosystem remains a draw for longer-term investors. Neither asset is immune to macro selloffs, but their funds are still seeing net subscriptions — a sign that a slice of institutional money is betting on these chains even as the broader market pulls back.
The data underscores a selective appetite. Not every altcoin is benefiting; the flows are narrow. But the persistence of inflows into XRP and Solana products suggests some allocators view the current macro weakness as a dip to add exposure, rather than a reason to exit entirely.
The next test will come when weekly flow data lands again next Tuesday. If outflows accelerate or the altcoin trickle dries up, the picture could darken fast. For now, the money is voting with two feet — one heading for the exits, the other stepping in.
